MIRA INFORM REPORT

Report Date :

05.11.2012

IDENTIFICATION DETAILS

Name :	SHAN HUA PLASTIC INDUSTRIAL CO., LTD.
Registered Office :	1F., No.20, Jhongshan 7th St., Guiren Dist., Tainan City 711

Country :	Taiwan

Date of Incorporation :	26.07.1983

Com. Reg. No.:	72202504

Legal Form :	Joint Stock Company

Line of Business :	Manufacturing and sales of PU, nylon, PE, PVC hoses and composite hoses, etc

No. of Employees :	About 150 Employees

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Taiwan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

TAIWAN - ECONOMIC OVERVIEW

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. In keeping with this trend, some large, state-owned banks and industrial firms have been privatized. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.9%, due primarily to a 20% year-on-year decline in exports. In 2010 GDP grew 10.9%, as exports returned to the level of previous years, and in 2011, grew 5.2%. However, 2012 growth will likely be less, according to most forecasters, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but so far Taiwan has been excluded from this greater economic integration largely because of its diplomatic status with the exception of the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other regional partners, and negotiations on a deal with Singapore began this year. Follow-on components of ECFA, including deals on trade in goods, services, and investment, have yet to be completed. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 10.9% of the island's total population as of 2011. The island runs a large trade surplus, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since 2005 China has overtaken the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

Source : CIA

Contact Points

Company Name:	Shan Hua Plastic Industrial Co., Ltd.
Supplied Name:	Shan Hua Plastic Indl. Co. Ltd.
Trading Address:	No.20, Jhongshan 7th St., Guiren Dist., Tainan City 711, Taiwan (R.O.C.)
Supplied Address:	No. 20 Chung Shan, 7th Street, Gueiren District Tainan 71152
Telephone Number:	+886-6-230-4567
Fax Number:	+886-6-230-7799
E-mail:	shpi@shanhua.com.tw
Website:	www.shpi.com.tw

Notes: The exact name and address are as above.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	Shan Hua Plastic Industrial Co., Ltd.
Registered Address:	1F., No.20, Jhongshan 7th St., Guiren Dist., Tainan City 711, Taiwan (R.O.C.)
Date of Foundation:	1983-7-26
Registration Number:	72202504
Registry:	Tainan City Government
Registered Capital:	NTD 250,000,000 (USD 8,500,000) (As of 2012.11, 1 NTD = 0.0340 USD)
Paid-up Capital:	NTD 250,000,000 (USD 8,500,000)
Legal Representatives:	Linghong Zhang
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of PU, nylon, PE, PVC hoses and composite hoses, etc
Staff:	About 150 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2011-8-24

History

Subject was incorporated on 1983-7-26 with registered number 72202504 as Joint Stock Company in Taiwan.

Shareholders

Name	Subscription Shares
Linghong Zhang	41,000
Jianfang Cai
21,800
Minglong Zhang	22,450
Mingzhang Zhang	20,700

The information above is that of subject’s major shareholders.

Subsidiaries & Branches

Related Company

Name	Hong San Fu Industrial Co., Ltd.
Address	No.82, Dongshan Rd., Niaosong Dist., Kaohsiung City 833, Taiwan (R.O.C.)
Telephone Number	+886-7-732-3689
Fax Number	+886-7-732-3690

Agent

Name	UD.USAHA JAVA
Address	JI.P. Jayakarta 141 Blok III F/18 Jakarta 10730, Indonesia
Telephone Number	+62-21-626-0418
Fax Number	+62-21-639-6238

Note: It is introduced that subject has sales offices in Taipei city, Taichung city, Kaohsiung city, and mainland China, but we cannot obtain the relevant information from any sources.

Personnel Information

Core Management

Directors

1
Name	Linghong Zhang
Position	Board Director
2
Name	Jianfang Cai
Position	Director
3
Name	Minglong Zhang
Position	Director
4
Name	Mingzhang Zhang
Position	Supervisor

Personnel Structure

Total Employees

About 150 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.20, Jhongshan 7th St., Guiren Dist., Tainan City 711, Taiwan (R.O.C.)

Production Information

l Subject is engaged in manufacturing of PU, nylon, PE, PVC hoses and composite hoses, etc.

l Subject has a factory (about 19,800 square meters) in Tainan city for production

Purchase Information

l The registered activities of subject:

Business Code	Details
--	Manufacturing, processing and trading of pneumatic power tools, polyvinyl chloride pipe, nylon tube, and polyethylene pipe
--	Import and export of above items

l The components and raw materials for production are mostly purchased from domestic markets.

Sales Information

l Subject is engaged in sales of PU, nylon, PE, PVC hoses and composite hoses, etc.

l Subject’s sales regions include domestic market, Southeast Asia, Europe, and America, etc.

l Subject obtained the certification of ISO 9001.

l The hoses manufactured by subject are applied to transferring air, water, oil and chemical, etc.

l It is introduced that subject has sales agent in Jakarta, Indonesia.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Product	Payment Terms	Proportion
Components and raw materials	COD, CBD, etc	100%

Foreign Purchase

Subject has little export.

Sales

Domestic Markets

Product	Sales Terms	Proportion
Hoses, etc	COD, CBD, etc	100%

Export

Product	Sales Terms	Proportion
Hoses, etc	CBD, etc	100%

Financial Information

Subject has no obligations to disclose its financial statements to the third party according to the relevant policy in Taiwan and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff Mr. Chen declined to disclose its financials citing the grounds of company’s confidentiality; from other source we can not obtain the relevant information, either.

Bankers

Name	Taiwan Bank

Public Record

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

Lawsuit

Up to date of reporting, no existing or latent litigation of the subject has been found.

Interview Details

Name	Mr. Chen
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.66
UK Pound	1	Rs.86.37
Euro	1	Rs.69.24

INFORMATION DETAILS

Report Prepared by :

PRL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.